Northrop Grumman Corporation (NOC) vs Space Exploration Technologies Corp. (SPCX)

Northrop Grumman Corporation and Space Exploration Technologies Corp. are both Aerospace & Defense companies. Space Exploration Technologies Corp. is the larger, with a market value of $1.68T against $74.6B — 22.5× the size. Space Exploration Technologies Corp. has negative trailing earnings, so its P/E is not meaningful; Northrop Grumman Corporation trades at 16.5×. Northrop Grumman Corporation has the higher net margin (10.4% vs −10.7%) and the higher return on invested capital (9.84% vs −0.33%). Both pay a dividend; Space Exploration Technologies Corp. yields more (2.87% vs 1.82%). Across the 18 metrics below, Northrop Grumman Corporation leads on 13 and Space Exploration Technologies Corp. on 5.

Valuation

Metric NOC SPCX Aerospace & Defense median
P/E 16.52 n/m 28.48
P/S 1.71 46.62 2.95
P/B 3.99 8.45 2.68
Price to free cash flow 17.76 n/m 31.70
EV/EBITDA 13.87 140.42 16.85
EV/Sales 1.96 45.03 2.74
Earnings yield 6.05% (1.43%) 0.89%
Free cash flow yield 5.63% (2.63%) 0.00%

Profitability

Metric NOC SPCX Aerospace & Defense median
Gross margin 20.02% 56.74% 26.41%
Operating margin 10.61% (2.08%) 3.69%
Net margin 10.37% (10.71%) 2.74%
Free cash flow margin 9.64% (122.62%) 0.00%
Return on equity 26.07% (3.78%) 4.44%
Return on assets 8.88% (2.21%) 1.90%
Return on invested capital 9.84% (0.33%) 0.26%

Growth

Metric NOC SPCX Aerospace & Defense median
Revenue growth (TTM) 6.51% — 18.03%
EPS growth (last fiscal year) 2.61% (93,838.89%) 24.80%
Revenue growth, 5-year CAGR 2.66% — 9.73%
Net income growth, 5-year CAGR 5.57% — 0.00%

Health

Metric NOC SPCX Aerospace & Defense median
Debt to equity 0.77 0.22 0.20
Current ratio 1.23 3.08 2.85
Net debt to EBITDA 1.80 (0.44) 1.29

Dividend

Metric NOC SPCX Aerospace & Defense median
Dividend yield 1.82% 2.87% 0.91%
Payout ratio 0.30 — 0.30

Size

Metric NOC SPCX Aerospace & Defense median
Market cap 74.62b 1.68t 1.78b

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